Rupee tumbles to over 28-month low of 107.83 vis-à-vis US dollar

Kathmandu January 15- Nepali rupee has tumbled to over a 28-month low, as the Indian rupee, with which the country’s currency is pegged, came under pressure due to growing demand for US dollars.

Nepali rupee will open for trading at 107.83 against the US dollar on Friday, shows the reference rate of Nepal Rastra Bank (NRB), the central bank.

The last time the rupee had fallen to this level was on September 5, 2013, when the exchange rate stood exactly at 107.83. This exchange rate is the second lowest in the history of Nepal.

Nepali rupee had plunged to an all-time low of 109.03 a dollar on September 4, 2013.

Nepali rupee’s rise and fall depends on the movement of the Indian currency because Nepali rupee is pegged to the Indian rupee at 1.6.

Today, Indian currency opened for trading at 67.05 per dollar and rose to 67.03 during intra-day trading, before closing at over a 28-month low of 67.29.

The Indian currency is currently under pressure as foreign institutional investors are continuously offloading shares in line with global selloff. This is raising demand for the greenback.